Inside Financial Markets

Will NIB Bank (NIB) Buy Standard Chartered Bank (Pakistan) In Future

This is The personal Analyst Opinion which We trying to provide some facts how foreign banks are leaving Pakistan, We are not asking anyone to make an investment on the basis of the head-line, but can give you enough food for thoughts.

When NIB Limited (NIB) President was Iqbal H. Khawaja , after he prompted to Director, There was someone who came as President of NIB for short period, but later Badar Kazmi who was President of SCB retired and Join NIB bank for a period of 3 years.

He must have done working (we guess) on buying / merger with SCBPL, NIB – the parent company is one of the biggest group in Singapore.

In last few years we have witness NIB has been dis-investing from Picic Insurance company, Picic Assest Management company. So, they can focus on Core-banking and also expending their business.

SCBPL has not even 300 branches, but one of profit making bank.
NIB even does not have 300 Branches, but one of the highest capital base bank, NIB earning for 1H15 merely in paisa.

Now who is the president of NIB, the one who is dynamic, expert in financial industry Mr. Atif Bokhari , Who was President of UBL, UBL has made tremendous progress under the leadership of Mr. Bokhari.

Mr. Bokhari is currently the president of NIB, Mr. Badar Kazmi retired after completing his term with NIB.

As per SBP guidelines both the bank have to increase no of Branches, I am still in opinion, if they merge NIB will transform into good profit making Bank, as well as  capital will also increase.

Cost cutting – if merger are done, NIB & SCBPL both are listing company, both have President- CEO, CFO, Head of Audit, CIO, Head of HR, listing fee, KSE listing fee, CDC fee, if the merger done, NIB will be in huge benefit of costing cutting and bringing more profit, because the need one President, CFO, CIO, Head of HR, Head of Audit etc.

To point out more on SCBPL, has recently dis-investing their holding from Standard Chartered Modarba and Standard Chartered Leasing, ORIX leasing has shown interest to acquire SCM & SCLL holding.

As you all know, foreign banks are leaving Pakistan, I can give you few names, they were operating in Pakistan, some have completely gone and few had reduce their operation to just 2-5 branches.

The very First Bank which I recall who left Pakistan was Bank of America.
Society General (French Bank), Now Meezan Bank.
Mashreq bank is still operating with few branches, they had big branches in Pakistan , Karachi they had beautiful branch at Bharia complex, currently we see Samba Bank.
CitiBank N.A. was first bank who brought consumer banking with Credit Cards, Foreign currency accounts, Mortgages etc, they have reduced their operation and now with only few branches they are still operating.

American Express Bank, now JS-bank.

HSBC, now merge with Meezan.

ABN-Amro, later Royal bank of Scotland , Merge with Faysal Bank.

Rupali Bank from Bangladesh is no more, Arif Habib bank, now Summit Bank.

So the point I was trying to make foreign banks are leaving Pakistan, why no idea, the only interview I watched , it was from  CEO of HSBC, he pointed out, we wish to leave Pakistan, where by we can not make enough money, we will rather move our investment into a large economy,

The last two foreign banks who came to Pakistan, one was Barclays , now merge with HBL, Barclays came somewhere in 2007, with the idea of introducing, mortgage , but fail and no more.

ICBC is Chinese bank , operating with few branches.

There are chances NIB will acquire SCBPL in future. The rest God knows.

Baqar Hussain

A Wannabe CFO, just had stepped in the corporate sector, willing to explore every aspect here and learn as mush as i can, awareness for those who dont, get the info where ever possible and stay up to date always.

The Canadian Securities Institute


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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)